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Which of the Following Is Not Correct

Question 8

Multiple Choice

Which of the following is not correct?


A) Investment is the purchase of new plant, equipment, and buildings and the additions to inventories.
B) Net investment equals gross investment minus depreciation.
C) Depreciation decreases the value of a firm's capital.
D) Gross investment is the amount by which the value of capital increases.
E) Gross investment is the total amount spent buying new capital and replacing depreciated capital.

Correct Answer:

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